Bitcoin Price Prediction: $40,000 Target Possible This Year, Fundstrat's Tom Lee Says

Predicting where the price of the king of cryptos will head to is a no mean feat. Both bulls and bears will always have clashing opinions, and that shrouds each key fundamental event with uncertainty concerning Bitcoin's price.

Last month, Fundstrat Global Advisors' head of research Thomas Lee expressed his firm's bullish outlook for BTC this year. Lee listed some critical changes, and global risks that Fundstrat identified will affect how BTC trades in the market.

His prediction last month was for Bitcoin to mimic the same move it made the year before: a 100% price appreciation throughout the year. That means that Bitcoin will go up to $16,000 since BTC's price was just $8,000 when he tweeted the summary of his firm's exclusive report to investors. A month later, Lee upped that prediction to $40,000.

One of BTC's bullish factors that Fundstrat specified at the start of the year is the elections in November. Although Lee didn't name a specific candidate like Andrew Yang to play a part in BTC's wider adoption, he believes that this event will nonetheless be positive for BTC.

Lee's firm also pointed out how the halving is not factored in the charts yet and that geopolitical risks will further buoy Bitcoin's dollar value. Now, appearing at CNBC's 'Power Lunch, Lee cites similar catalysts but specifically named the coronavirus outbreak as a bull trigger.

Lee also called the attention to technical patterns, particularly the 200-day MA that it broke above of recently to which he said boosts BTC's price to 190% on average in the next six months.

Finally, the Fundstrat founder thinks that Bitcoin will also surpass the Dow Jones Industrial Average as the crypto will be priced at $10,000 higher than the index.

Bitcoin (BTC) dropped from Monday's high of $10,199 to early Tuesday's low of $9,706, as of press time. The chart of the king of cryptos now printed a bearish engulfing pattern on the daily chart. Whether that's significant and how far it will fall remains to be seen, but it does coincide with other bearish technical signals.

On Monday, the "13" candle was confirmed on the TD Sequential indicator, and this has been accurate in calling reversals for BTC in the past, including the December 2017 decline, June 2019 downtrend, and the December 2018 reversal from lows.